TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Approve RFB No. 2024-01 Gasoline & Diesel Fuels: Supply and Delivery Services for the City of North Port, to Palmdale Oil Company, LLC in the Estimated Annual Amount of $1,455,000.00 and Authorize the City Manager to Approve Renewals in Accordance with the Terms and Conditions in the Solicitation.
Recommended Action
Approve RFB No. 2024-01 Gasoline and Diesel Fuels: Supply and Delivery Services for the City of North Port to Palmdale Oil Company, LLC in the estimated annual amount of $1,455,000.00 and authorize the City Manager to approve renewals in accordance with the terms and conditions in the solicitation.
Background Information
The Department of Public Works, Fleet Management Division, in conjunction with the Utilities Department and the Facilities Maintenance Division prepared a Request for Bid (RFB) for Gasoline and Diesel Fuels: Supply and Delivery Services, which was advertised on Demandstar on September 8, 2023. This is an annual contract to supply all the City’s fuel by delivering gasoline and diesel to various City fueling facilities. This bid opportunity was broadcasted to 199 suppliers plus an additional seven (7) supplemental suppliers; 14 of these companies accessed the solicitation documents.
On October 19, 2023, four (4) bids were received for RFB 2024-01.
Ø Palmdale Oil Company, LLC
Ø Roger Petroleum, Inc.
Ø Agriland FS, Inc.
o Deemed non-responsive
Ø Mansfield Oil Company of Gainesville, Inc.
Palmdale Oil Company, LLC was determined to be the lowest responsive, responsible bidder for the supply and delivery of gasoline and diesel fuel to various City fueling facilities on an “as needed basis” for Group A - Tankwagon Lots and for Group B - Transport Lots at the current unit prices.
Palmdale Oil Company, LLC will supply and deliver tankwagon lots and transport lots for unleaded gasoline, ultra-low sulfur (on-road), and ultra-low sulfur dyed (off-road) diesel fuels. Tankwagons are defined as deliveries of 2,500 gallons or less, and transport is defined as deliveries in excess of 2,500 gallons.
Bid specifications state that the award will be made to the lowest responsive, responsible bidder submitting the lowest firm differential. The firm differential is the overhead and cost per gallon to have the gasoline or diesel delivered. This firm differential is added to the posted price, which fluctuates with the market, to obtain the net price per gallon. The published average price(s) is used to determine the "base reference price(s)". The market area is Tampa, Florida, and the publication used is the Oil Price Information Service (OPIS), published daily by the United Communications Group of Silver Spring, Maryland.
The term of this contract is from the date of the award through December 31, 2028, with the option to renew for up to three (3) additional one-year terms, by mutual consent, provided there are no changes in terms and conditions.
As permitted by the Procurement Code, purchase orders will be issued upon the award of this bid and any subsequent renewals. The submitted Bid form signed by the Bidder, together with the complete bid package and any addenda furnished by the City shall constitute a binding contract.
Strategic Plan
Infrastructure & Facilities Integrity
Financial Impact
Funding in the amount of $1,390,000 is budgeted in the Fleet Management Division FY2024 budget in account number 520-3035-519.52-02, Fuel.
Funding in the amount of $35,000 is budgeted in the Utilities Department FY2024 budget in account number 420-6062-535.52-04, Diesel.
Funding in the amount of $30,000 is budgeted in the Utilities Department FY2024 budget in account number 420-6061-533.52-04, Diesel.
Procurement
Gasoline & Diesel Fuels: Supply and Delivery Services were procured pursuant to Chapter 2 - Administration, Article VIII - Procurement, Section 2-404 - Competitive Sealed Bid Process of the Code of the City of North Port, Florida.
Palmdale Oil Company, LLC
911 N. Second Street
Fort Pierce, FL 34950
Attachments:
1. Notice of Intent to Award
2. Award Recommendation
3. Bid Tabulation
4. Bid Response: Palmdale Oil Company, LLC
5. Request for Bid No. 2024-01 and Addenda
6. Florida Division of Corporations Document
Prepared by: Kenneth Rappuhn Jr., Fleet Manager
Department Director: Chuck Speake, Public Works Director